'Fast Money' Recap: A Stunning Move

NEW YORK (TheStreet) -- The S&P 500 started the week off strong, making new all-time highs but ending up well off those highs by the close.

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said he was "stunned" by today's move higher in the market. Despite remaining concerns about emerging markets, U.S. equities will likely continue higher until those issues resurface in a more meaningful manner.

Tim Seymour, managing partner of Triogem Asset Management, said the Federal Reserve will continue to protect the U.S. economy.

Guy Adami, managing director of stockmonster.com, reminded investors about how weak the biotech sector was the last the time the broader market pulled back. He added that in the overall market, earnings per share growth has been strong while revenue growth has been weak, which is not a good sign.

Regarding biotech stocks, Karen Finerman, president of Metropolitan Capital Advisors, said she prefers to use exchange-traded funds such as the iShares Nasdaq Biotechnology ETF (IBB) and the SPDR Biotech ETF (XBI) to reduce the individual exposure to these volatile stocks.

She added that now is a good time to consider taking some profits or sell upside call options.

Adami said he likes Blackstone (BX) and Fortress Investment Group (FIG) to take advantage of the increased M&A activity.

Netflix (NFLX) hit all-time highs on Monday after announcing a partnership with Comcast (CMCSA) to boost bandwidth for its streaming content services. Laura Martin, an entertainment and Internet analyst at Needham & Company, raised her price target on Netflix to $525 as a result.

She said Netflix was previously paying Cogent Communications Group (CCOI) for a similar service with Comcast, but simply cut Cogent out. As a result, she believes Netflix will continue paying roughly the same price it was already paying but will get better results by dealing directly with Comcast. She added that Netflix will likely look to raise prices and has a big international opportunity.

Adami continues to like Netflix, but believes it is too hard to initiate a position at current levels and suggested a pullback to $385 was logical. Seymour is not a buyer of Netflix. Finerman thinks the company will do a secondary offering since its stock price has been strong.

Seymour likes Facebook (FB) as a long position and suggested that its $19 billion deal to buy WhatsApp was a good move.

Adami said Twitter (TWTR) seems likely to pull back to the high-$40s while Facebook should pull back to around $67 since it has "gone too far, too fast."

Kelly said it was a great move for Ford (F) to partner with BlackBerry's (BBRY). He's a buyer of BBRY.

SolarCity (SCTY) reported an 87% year-over-year increase to its revenue and beat analyst estimates. However, it delayed its earnings per share results because of accounting issues due to recent acquisitions. As a result, shares were lower in after-hours trading.

Seymour said SolarCity provided strong guidance and said investors should take advantage of the weakness. Finerman said she doesn't like when companies delay earnings results so she's avoiding SolarCity. Adami called it a "no touch."

Sarbjit Nahal, equity strategist at Bank of America/Merrill Lynch, said cyber attacks will likely continue to increase. He added that the energy grid and critical manufacturing could come under attack. The global annual cost of cyber attacks is $500 billion.

Kelly said the best way to invest in cyber defense is through FireEye (FEYE). He added that corporations could make their databases more complex, which would benefit Oracle (ORCL).

3D Systems (DDD) was the first stock on the show's "Pops & Drops" segment. Seymour said he would avoid the entire 3-D printing sector.

Jos. A. Bank Clothiers (JOSB) popped 9% after Men's Wearhouse (MW) raised its bid for the company. Finerman said she bought more shares of JOSB Monday and sold upside April calls against it.

Delta Air Lines (DAL) jumped 2% and Adami said he thinks it'll continue higher to $35.

eBay (EBAY) climbed higher by 3%. Kelly is a buyer at current levels and agreed with hedge fund manager Carl Icahn that the company should spinoff its PayPal business.

Dennis Gartman, editor and publisher of The Gartman Letter, said not to trade natural gas based on Ukraine because U.S. natural gas is essentially non-exportable. He did, however, note that Urkaine is a large exporter of wheat, and those prices could be affected by the recent turmoil in the region. He added that issues in Venezuela could aid in higher crude oil prices while lower copper prices could be a bearish sign for the U.S. economy.

Seymour said investors should not worry about China but he's not a seller of copper either.

Steve Tanger, president and CEO of Tanger Factory Outlet Centers (SKT), said every consumer has been feeling the pinch in terms of spending. He loves when his tenants extend discounts to their customers because it builds loyalty towards the stores. The quality and brand awareness have gotten much better in a very short period of time for most of his outlet retailers, he concluded.

Finerman said Polo Ralph Lauren (RL) has done well in keeping a strong brand name alongside a strong outlet business, whereas Coach (COH) has not.

Adami said Tanger Factory Outlet Centers has a reasonable valuation and should do well as long as the broader market does well too. Seymour said there seems to be value in SKT, with a dividend yield near 3% and 20% return on equity.

President Trump's move Thursday to cancel his meeting with North Korea leader Kim Jong Un sent the stock market into a "tizzy," according to TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer.